A Snapshot of the US Online Gambling Regulatory Landscape

Betting on professional sports competitions is now legal in the U.S. although the regulatory landscape is different when it comes to online sports betting. Of the 18 U.S. regions that have legalized sports betting, four states namely Arkansas, New Mexico, New York, and North Carolina have yet to enact laws that legalize online gambling.

The 18 states that have legalized sports betting include Arkansa, Colorado, Delaware, Indiana, Iowa, Mississippi, Montana, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Tennessee, Washington D.C. and West Virginia.

Most U.S. sports bettors though still prefer to place wagers online, despite the presence of licensed brick and mortar sportsbooks in their states. The reason for doing so is that online bookmakers tend to offer more competitive betting odds, considering that online gambling sites have less operational costs. Besides, it’s also cost efficient and more convenient on the part of the sports bettor. Legalized online gamling proved beneficial, even as brick and mortar casinos and sportsbooks had to shutdown.

The Importance of Interstate Gambling Agreements Between State Governments

As a general rule though, sports betting or casino gaming online is allowed only a state-by-state basis; meaning, bettors or players must be located in the same state where the sportsbook or online casino is legally registered. In some cases, state governments that have existing interstate gambling agreements also allow gamblers in their jurisdictions to access different betting and gaming sites licensed in participating states.

New Jersey poker players, for one, can join poker tables in events hosted in Nevada and other states with which NJ has an interstate gambling agreement. The same rule applies when placing bets with bookmakers that have yet to establish a licensed presence in another state. Citing William Hill as example, this UK bookmaker first established its online sportsbook in Nevada, and was able to establish an online presence in New Jersey only in 2019.

Prior to the approval of the UK bookmaker’s online gambling licence in NJ, accessing Hill’s sportsbook in Nevada by those located in New Jersey was legal, due to the interstate gambling agreement between the two state governments.

Actually, New Jersey has the advantage of having multiple interstate agreements, including with New York that has yet to legalize sports betting. Interstate agreements, after all, prevent gambling revenues from leaking out of a state by way of technologies that can keep track of where the sports bettor is located. That way, proper reporting and tax withholding can still be carried out on a state-by-state basis.

Will No Registration-No Account Casinos Become Legal in the U.S.

Presumably, lack of monitoring systems is one reason why No Registration-No Account online casinos will not be recognized as a legal form of online gambling in the U.S. While different states have different regulations, agreements between state governments will have a lot to cover; not only in relation to online gambling laws, but also in Anti-Money Laundering/Anti-Terrorist Financing Acts and Tax Reporting.

Still, some say that if state gambling regulators are provided with technology that will allow them quick and effective oversight, there’s a chance No Registration No Account Casinos will included in their regulatory fold.

In Germany, some states allow No Registration/No Account Casinos; but Interstate Treaties do not allow online gambling between citizens located in different states. Still, what is currently being proposed, is for the establishment of a central Gambling Administration to oversee online gambling operations and activities in all German states.

Still, accessing an No Registration/No Account online casino requires a careful examination of the iGaming operator’s license, the providers of casino games software and the payment processing systems in place, as well as the technology used for automated identity verification. To stay on the safe side, choose from the list of No Registration/No Account online casinos that have been reviewed by Chapman.